Loan Repayment Calculator

How to use this calculator

1. Pick your currency at the top of the calculator. It sets the formatting for every figure and does not convert values between currencies.
2. Enter the amount you want to borrow and the interest rate. The rate is treated as a nominal annual rate charged each payment period.
3. Set the loan term in years and choose how often you will make repayments.
4. If there is an arrangement fee, enter it and choose whether it is taken from the loan, added to the balance or paid separately.

Results update as you type. Use the breakdown tab to see the balance fall year by year, the chart tab for capital against interest, and the summary tab for the full cost picture.

What does each input mean?

• Loan amount — what you borrow, from 1 to 10,000,000 in the chosen currency.
• Interest rate — the annual rate from your loan quote, 0% to 99.99%. It is charged as a share each payment period.
• Loan term — whole years from 1 to 40.
• Payment frequency — Weekly, Fortnightly, Monthly, Quarterly or Annually. It sets how many payments you make and how often interest is charged.
• Arrangement fee — an optional fee, from 0 to 1,000,000.
• How is the fee paid? — From loan amount (you receive less but repay the full amount), Added to loan (the fee is borrowed and earns interest) or Paid separately (an upfront cost outside the repayments).

What do the results show?

• Payment — the main figure: what you pay each period, named for the frequency you chose.
• Total interest and Total repaid — the interest over the loan, and the sum of every repayment.
• Amount received and Amount financed — the cash you get and the balance the repayments are worked out on. They differ when a fee is deducted or added.
• Payments — how many payments you make, noting a smaller final payment when there is one.
• Estimated effective annual rate — the yearly rate once compounding at your payment frequency is included.
• Breakdown, chart and summary — a year-by-year table of principal, interest and balance, a capital-against-interest chart, and the full cost summary with the total finance charge.

How this loan calculator works

The calculator works out a fixed repayment that clears the loan over the term you choose, then simulates the loan one payment at a time so the interest split and the final payment are exact. The final payment is usually a little smaller than the others because only the remaining balance is left to clear.

With £10,000 at 5% over 6 years paid monthly, that resolves to about £161 a month, roughly £1,600 of interest and £11,600 repaid in total.

What information do I need?

• The amount you want to borrow
• The interest rate, and whether it is nominal or effective
• The loan term and how often you will repay
• Any arrangement, origination or prepaid fees

This calculator models a fixed-rate repayment loan. For a revolving credit card balance instead, see the Credit Card Payoff Calculator.

Nominal rate and effective annual rate

A nominal interest rate is an annual rate that does not, by itself, show the effect of compounding during the year. The effective annual rate reflects the payment frequency: when interest is charged more than once a year, the effective annual rate is higher than the nominal annual rate. The calculator shows the effective annual rate under the inputs.

How loan fees affect borrowing costs

Fees change both the amount you receive and the overall cost. If a fee is deducted from the loan amount, you receive less cash while still repaying the original amount. If a fee is added to the loan balance, interest is charged on that fee too. If it is paid separately, it adds to your upfront cost but not to the repayments.

How to reduce the cost of a loan

A shorter term usually reduces the total interest paid, though it raises the regular repayment. Overpayments can also reduce interest and shorten the term if your loan allows them without an early repayment charge. Before borrowing, check the rate, all fees, the repayment amount, the term and any early repayment conditions.

Important information

Important: This calculator provides an estimate for general information only and is not financial advice. It is not an APR calculation, a representative APR or a loan offer. Actual repayments, interest, fees and total borrowing costs depend on your lender’s terms, payment dates, calculation methods, rounding, interest-rate changes and any additional charges.

If you are worried about making loan repayments, contact your lender as soon as possible. Free, confidential debt advice may be available from StepChange, National Debtline and Citizens Advice.

Frequently asked questions